Tech Giants Drag Wall Street Lower
US stocks fell sharply on Thursday after a steep drop in Alphabet shares set a negative tone across financial markets. Google’s parent company slid more than 4%, pulling major indexes down despite reporting quarterly profits that beat expectations. The S&P 500 dropped 1.2%, marking its sixth decline in seven sessions since reaching a record high. The Dow Jones Industrial Average fell 606 points, while the Nasdaq Composite lost 1.5%.
Investors were rattled by Alphabet’s warning that spending on equipment and long-term investments could jump to around $180 billion this year—far above forecasts. The scale of that investment raised concerns about costs and profitability, overshadowing strong earnings across the wider tech sector.
Job Market Jitters Hit Bonds and Confidence
Fresh signs of weakness in the US labour market added to the gloom. Treasury yields fell after data showed a larger-than-expected rise in unemployment benefit claims, fuelling fears that layoffs may be picking up pace. The yield on the 10-year Treasury slipped to 4.21% from 4.29%.
Separate reports painted a similar picture. Employers announced more than 108,000 job cuts last month, the worst January figure since 2009, while job openings fell to their lowest level in over five years. Together, the data strengthened expectations that the Federal Reserve could cut interest rates to support growth, even if that risks reigniting inflation pressures.
Wild Swings in Commodities and Crypto
Volatility spread well beyond equities. Silver prices plunged more than 13% in their latest dramatic swing, while gold fell 2.3% after weeks of sharp rises and falls. Bitcoin also slid heavily, dropping below $68,000 from its October peak above $124,000, dragging down crypto-related stocks such as Coinbase and Strategy.
Not all companies suffered. Broadcom climbed 3.7%, buoyed by continued enthusiasm around artificial intelligence spending, while healthcare firm McKesson surged nearly 17% after strong earnings. Elsewhere, markets across Europe and Asia also fell, with South Korea’s Kospi dropping almost 4% as Samsung Electronics reversed recent gains.
